FinanceIndia

 The automatic choice when investors want regular cash flow from their investments, the natural choice for majority is post office monthly income scheme or bank term deposits. However, due to declining interest rates of conventional investments, SWP in mutual fund is emerging as a popular choice amongst investors. Also known as systematic withdrawal plan, it is a good investment option for investors needing regular cash flow from their mutual fund investments. The reasons are following – SWP in mutual fund gives regular cash-flows to MF investors till such investors have sufficient unit balance in their account. As returns are not assured in mutual funds, investors can decide how much they want as cash flow and at what frequency. The frequency can be monthly, quarterly or annually. If the withdrawals from systematic withdrawal plan is reasonable, investors can also expect capital appreciation over and above the regular cash flow. Usually, the returns from mutual funds is hig...

What is SIP? Mutual Funds India offer a variety of choices to investors, in terms of the kind of fund to invest in, such as debt or equity etc. They also offer a choice in terms of how the investor wants to invest - SIP or Lumpsum. While both are popular methods of undertaking Mutual Fund investments, an investor can choose one or both methods based on their need and convenience. In case of the SIP investment, the investor has to make periodic investments, based on the chosen frequency, such as daily, monthly, quarterly or yearly. They have to pump in money on the chosen SIP date, for the investment tenure and allow the amount to grow into a substantial corpus over a period of time.   How it works? SIP mutual funds brings discipline in investing by making sure the investor invests small but regular amounts in the chosen scheme, over time. On choosing a frequency and date, the money automatically gets debited from the investor’s bank account. But, in case, there is insufficie...

ELSS or equity linked savings schemes are open ended diversified equity mutual funds which have a lock in period of 3 years as they offer tax benefits to investors under Section 80C of the Income Tax Act 1961. Also known as ELSS funds , one can invest in ELSS through SIP (Systematic Investment Plan) or through lumpsum (One time investment). It must be noted that taxes can be saved either through risk free or market linked schemes. The former consists of PPF, national savings certificates (NSC), traditional insurance policies and more. The latter, on the other hand would consist of ELSS and ULIPs (unit linked insurance plans). In the risk free schemes, capital safety is assured whereas the ones with risk are subject to market risks. Investors that want total safety of the money invested should only opt for government savings schemes, FDs or other risk free options. On the contrary, if one is willing to take a certain amount of risk and remain invested in ELSS even beyond the lock in...

What is a lumpsum calculator? A lumpsum calculator is an online tool that tells you how much money you can make over a period of time. It's a simple way to figure out the returns on lumpsum or one-time mutual fund investments including tax saving mutual funds. If you Google lumpsum calculator, you will get an online tool which   has a formula box to input the investment amount, the investment period in years, and the estimated annual rate of return. Within seconds, the lumpsum calculator will show you the final accumulated amount. With help of the lumpsum calculator, you can find out the estimated returns on the investments in tax saving mutual funds or the future value of it based on the investment made today at certain assumed rate of returns.   How does lumpsum calculator work? The lumpsum calculator is simple to use as you need to enter few necessary details and it calculates the returns and maturity amount. It helps you plan your investments better based on the ...